US egg producer Cal-Maine Foods has seen its fourth-quarter profits more than double on higher prices and lower feed costs, but the rise was not enough to prevent annual earnings from falling.
The company yesterday (26 July) booked net income of US$21m for the three months to 29 May, against $10.3m a year earlier. Net sales were up 4% to $222.1m.
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Chairman and CEO Fred Adams Jr said the company was “pleased” with its fourth-quarter results.
“We benefitted from favorable market conditions as egg supply and demand were well balanced, and average selling prices were higher than the prior year period. Our retail sales were good, and we were pleased with the modest improvement in our food service and restaurant egg sales,” Adams Jr said.
However, annual net income fell 14.7% to $67.8m on the back of a 2% fall in net sales to $910.1m.
Looking ahead, Adams said Cal-Maine expected the upcoming fiscal year would be a “good year” for the business. However, he added: “We expect feed costs will be relatively high and volatile.”
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